NetApp Announces Results for Fourth Quarter and Fiscal Year 2012

Company Reports Q4 FY’12 Revenues of $1.70 Billion; Fiscal Year Revenues of $6.23 Billion, Up 22% Year Over Year

Sunnyvale, Calif.- May 23, 2012
- NetApp (NASDAQ: NTAP) today reported results for the
fourth quarter and fiscal year 2012, which ended April 27, 2012.
Revenues for the fourth quarter of fiscal year 2012 totaled $1.70
billion, up 19% compared to revenues of $1.43 billion for the same
period one year ago.

For the fourth quarter of fiscal year 2012,
GAAP net income was $181 million, or $0.47 per share[1], compared to GAAP net income of
$161 million, or $0.40 per share, for the same period a year ago.
Non-GAAP net income for the fourth quarter of fiscal year 2012 was
$252 million, or $0.66 per share[2], compared to non-GAAP net income of $237
million, or $0.59 per share for the same period a year ago.

Revenues for fiscal year 2012 totaled $6.23
billion, up 22% compared to revenues of $5.12 billion for fiscal
year 2011. GAAP net income for fiscal year 2012 totaled $605
million, or $1.58 per share, compared to GAAP net income of $673
million, or $1.71 per share for fiscal year 2011. Non-GAAP net
income for fiscal year 2012 totaled $926 million, or $2.41 per
share, compared to non-GAAP net income of $866 million, or $2.20
per share for fiscal year 2011.

"With a strong product offering and well
established partner ecosystem, NetApp delivered our ninth
consecutive quarter of over 20% year-over-year product revenue
growth. Our ability to generate cash remains robust as the fourth
quarter was our best ever quarter in terms of cash flow from
operations," said Tom Georgens, president and CEO. "As the
innovation leader in the industry, and the only company offering a
unified scale out platform, we are the clear choice for enterprises
as they re-architect their data centers to provide agility while
reducing complexity and cost."

Outlook
NetApp's outlook for the first quarter of fiscal year 2013 reflects
the normal slower seasonality of the first quarter and increasing
uncertainty in the broader macro environment.

NetApp estimates revenue for the first quarter of fiscal year
2013 to be in the range of $1.40 billion to $1.50 billion, which
equates to a sequential decline of approximately 12% to 18% and a
year-over-year decline of approximately 4% to an increase of
3%.

NetApp estimates that first quarter fiscal year 2013 GAAP
earnings per share will be approximately $0.10 to $0.15 per share.
NetApp estimates that first quarter fiscal year 2013 non-GAAP
earnings per share will be approximately $0.34 to $0.39 per
share.

NetApp estimates that share count for the first quarter of
fiscal year 2013 will decrease to approximately 380 million shares,
including an estimated 7 million shares from the Company's
outstanding convertible notes.[3] Share count does not include the Company's
outstanding note hedges which are expected to offset 80% of the
dilution from the convertible notes at maturity or conversion.

Business Highlights
In its fourth quarter of fiscal year 2012, NetApp innovation
provided customers and partners with the storage foundation that is
enabling them to capitalize on data to help grow their business.
During the quarter, NetApp and Cisco built on the impressive
momentum of the FlexPod® design architecture by unveiling new
architectures to allow customers and partners to accelerate their
transition to the cloud. Additionally, customers around the world
continued to use NetApp® storage efficiency technologies to
leverage existing investments, significantly reduce costs, and help
support growth. Highlights during the quarter include the
following:

More Than 850 Customers Build on the
NetApp and Cisco FlexPod Architecture to Leverage the
Cloud

NetApp and Cisco unveil new FlexPod architecture
optimized for smaller workloads. New FlexPod design
architectures priced and sized for smaller workloads with 500-1,000
users allow customers to invest only in the infrastructure they
require and enable simple and rapid scaling to meet growing demands
as their business needs change. With the new entry-level FlexPod
solution, customers are able to maximize their investments with the
ability to easily scale architectures by simply adding incremental
capacity as their needs grow for larger application workloads.

NetApp and Cisco help customers accelerate transition
to Microsoft private cloud with new validated FlexPod
solution. The new FlexPod design architecture for the
Microsoft® private cloud is designed to meet growing demand
for choice and flexibility as more customers transition to the
cloud. The new design architecture helps customers reduce
infrastructure and application deployment time from days to hours
while helping achieve greater utilization of physical and virtual
resource pools. Additionally, FlexPod is the first validated data
center infrastructure to support Microsoft System Center 2012.

SOFTBANK Utilizes NetApp Technology
to Help Transform IT Infrastructure and Contribute to Japan's
Recovery Process Following 2011 Earthquake and Tsunami

By leveraging NetApp technology to consolidate and transform
its entire IT organization, SOFTBANK Group was able to deliver a
range of internal and external cloud services called White Cloud
that served as a catalyst for the company's continued growth and
success. Its newly transformed IT infrastructure also enabled the
company to deliver several of its cloud service offerings either at
highly discounted rates or free of charge to businesses, public
agencies, and nonprofit organizations just days after the disaster.
Additionally, SOFTBANK Group was able to extend its internal
virtual desktop service to 14,000 of its displaced employees in a
matter of weeks rather than the originally planned one-year
timeline.

New enhancements to the E-Series platform enable NetApp's
ecosystem of OEM partners to more effectively serve their
customers' growing big data requirements and serve as the platform
for many of NetApp's own big data solutions. The enhanced platform
provides improved management capabilities along with new data
protection technology to help customers optimize overall
performance.

Awards and Milestones

Customers, Partners and Employees Help NetApp Make Its
Debut on FORTUNE 500 List
NetApp was named a FORTUNE 500 company by FORTUNE Magazine, the
annual ranking of America's largest publicly and privately-held
companies for which revenues are publicly available. NetApp's
inclusion was based on the company's fiscal year 2011 revenue of
$5.1 billion. The ranking marks the latest milestone in NetApp's
history and is further testament to the value that NetApp delivers
to its customers, partners, shareholders, and employees.

20 Years of Innovation Drive Customer and Partner
Success
April 2012 marked a major milestone for NetApp as the company
celebrated its 20th anniversary. What began in 1992 with an idea
sketched on a placemat has grown into an industry-leading $6B+
company with over 12,000 employees who are committed to building a
model company. NetApp's 20-year achievement is a result of the
vision of NetApp's founders, the dedication of its employees, the
strength of its partnerships, and the success of all its customers.
Innovation has driven NetApp's growth throughout its history, and
this spirit of innovation remains strong as the company looks
forward to continuing to help customers in the future.

NetApp Continues to Earn Recognition as a Great Place
to Work
Built on a culture of innovation committed to partner and customer
success, NetApp was ranked #4 on Crain's Chicago Business's 2012
"Best Places to Work" list. The annual list recognized NetApp as
the region's highest-ranked technology employer.

NetApp Awarded 5-Star Partner Rating in CRN's 2012
Partner Programs Guide
NetApp's commitment to its partners' success is core to the
company's overall growth strategy. The CRN 5-Star Partner rating is
further validation that NetApp's channel program is one of the best
in the market today.

Webcast and Conference Call
Information
The NetApp fourth quarter and fiscal year 2012 results conference
call will be broadcast live on the Internet at investors.netapp.com on
Wednesday, May 23, 2012, at 2:30 p.m. Pacific Time. This press
release and any other information related to the call will also be
posted on the Web site at that location. An audio replay Webcast
will be available after 4:30 p.m. Pacific Time on the Web site.

NetApp uses a hybrid format for disclosing
key financial information associated with our quarterly results.
Concurrent with the press release, NetApp posts a supplemental
commentary with financial information and statistics to our Web
site at investors.netapp.com.

About NetApp
NetApp creates innovative storage and data management solutions
that deliver outstanding cost efficiency and accelerate business
breakthroughs. Discover our passion for helping companies around
the world go further, faster at www.netapp.com/nl.

NetApp, the NetApp logo, and Go further,
faster, are trademarks or registered trademarks of NetApp, Inc. All
other marks are the property of their respective owners and should
be treated as such.

"Safe Harbor" Statement Under U.S.
Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements include all of the statements under the Outlook
section relating to our forecasts for the first quarter of fiscal
year 2013 and expected benefits our customers may realize from our
products and partnerships, all of which involve risk and
uncertainty. Actual results may differ materially from our
statements and projections for a variety of reasons, including
general economic and market conditions, such as the macroeconomic
environment and the flooding in Thailand, and matters specific to
our business, such as customer demand for and acceptance of our
products and services. These and other equally important factors
are described in reports and documents we file from time to time
with the Securities and Exchange Commission (SEC), including the
factors described under the sections titled "Risk Factors" in our
most recently submitted Annual and Quarterly Reports on Forms 10-K
and 10-Q, respectively. We disclaim any obligation to update
information contained in these forward-looking statements whether
as a result of new information, future events, or otherwise.

NetApp Usage of Non-GAAP
Financials
The Company refers to the non-GAAP financial measures cited above
in making operating decisions because they provide meaningful
supplemental information regarding the Company's ongoing
operational performance. Non-GAAP net income excludes the
amortization of intangible assets, stock-based compensation,
acquisition-related income and expenses, restructuring and other
charges, asset impairments, non-cash interest expense associated
with our convertible debt, net losses or gains on investments, and
our GAAP tax provision, but includes a non-GAAP tax provision based
upon our projected annual non-GAAP effective tax rate for the first
three quarters of the fiscal year and an actual non-GAAP tax
provision for the fourth quarter of the fiscal year. We have
excluded these items in order to enhance investors' understanding
of our ongoing operations. The use of these non-GAAP financial
measures has material limitations because they should not be used
to evaluate our Company without reference to their corresponding
GAAP financial measures. As such, we compensate for these material
limitations by using these non-GAAP financial measures in
conjunction with GAAP financial measures.

These non-GAAP financial measures are used
to: (1) measure Company performance against historical results, (2)
facilitate comparisons to our competitors' operating results, and
(3) allow greater transparency with respect to information used by
management in financial and operational decision making. In
addition, these non-GAAP financial measures are used to measure
Company performance for the purposes of determining employee
incentive plan compensation. We have historically reported similar
non-GAAP financial measures to our investors and believe that the
inclusion of comparative numbers provides consistency in our
financial reporting at this time.

[1]GAAP earnings per share is calculated using
the diluted number of shares for all periods presented.[2]Non-GAAP net income
excludes the amortization of intangible assets, stock-based
compensation, acquisition-related income and expenses,
restructuring and other charges, asset impairments, non-cash
interest expense associated with our convertible debt, net losses
or gains on investments, and our GAAP tax provision, but includes a
non-GAAP tax provision based upon our projected annual non-GAAP
effective tax rate for the first three quarters of the fiscal year
and an actual non-GAAP tax provision for the fourth quarter of the
fiscal year. Non-GAAP earnings per share is calculated using the
diluted number of shares for all periods presented.[3]80% hedged on maturity
or conversion of the convertible notes.